C) Economy of consumption

The efficiency of economy of every country is measured by mean of GDP index. Perhaps, you have heard sometimes that politicians and ’’economists’’ promised to raise GDP level. But what this index actually indicates?

Gross domestic product is one of the most important indexes of economic development, which shows the final result of productive activity of economical resident units in area of material and non-material production. It means that the index of efficiency of our economy is the general amount of the products we produce.

All produced products must be sold and therefore consumed. Consumption raises sale volumes which brings the profit to producers in form of money. The more money the country earns the more efficient economy we have. So if we want to raise efficiency of our economy we must raise consumption which will give us opportunity to produce and learn more money. So, if we talk about GDP we must understand that it shows not only production volume but the level of consumption also.

It means that the more we consume the more we produce. The more we produce the higher GDP we have. The higher GDP we have the more efficient our economy is. In this scheme if we want to raise economy efficiency we must raise our consumption volumes. So, the more we consume the more we sell. The more we sell the more money we earn.

As result, we see these advertisements of alcoholic beverages, magic drugs, mobile phones (if you don’t have a new I-phone you are loser) and other absurd products you don’t need to have at all. Advertising industry is one of the most rich and profitable on these days. Companies spend more money for advertisement and sale process of the products than for their production. Besides, it is known that the best psychologists are working in this sphere to do as much as they can in order you consume exactly their products. They choose the right colors which stimulate the desire to consume the product, shape, logos, slogans and image of product. They also infuse a necessity to consume such products.

Now, let’s find out what economy really is.

Economy - is a science of minimization of the use of the limited resources, in order to reach maximum requirements of society.

Economy – is a science about efficiency of the use of limited resources,

Index of rising of the consumption and production level cannot be considered as the index of efficiency of use of the limited resources. Instead, it’s the index of their wastefulness and inefficiency.

The subject which we study in educational institution cannot be called as economy. The science of survival in conditions of market economy and earning of money is called ’’Chrematistics’’. Chrematistics is opposite conception to economy.

Chrematistics (from Greek: χρηματιστική) is the art of getting rich and pursuit of money profit based on non-productive activity in order to satisfy human requirements and gain the profit.

The term ’’Chrematistics’’ was defined by Aristotle to distinguish the late from economy. Soon chrematistics derived to separate science which is called as economy now, but their meanings are different from the very beginning.

D) Crisis

Crisis is a natural consequence of monetary system. The results of such crisis are rising of prices, level of unemployment, taxes and decline of economy at least.

Since our monetary system allows making more money just from the money or, as we say, to make the money from the air, it inevitably leads to inflation.

Inflation is devaluation of the money as result of the general money volume is blown. It happens when resale (basis of the trade), monetary and stock-exchange, financial frauds or bank interest take place. That is to say it happens when man earns money without creation of material products. It happens very often and it is very popular phenomenon right nowadays. Most companies (traders, dealers, distributors, usurer, bankers, clerks, sellers and so on) don’t produce any material products, though they are the most rich in the modern society. It is easier to resell something than produce. As such companies receive the profit producing nothing, an inflation appears and leads to the crisis. Such crisis is increased by bankruptcy of debtors who lose the debt war (this result is also inevitable).

Date: 2015-12-11; view: 1000